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A BILL TO BE ENTITLED
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AN ACT
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relating to a tax on title insurance policies written by title |
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insurance companies to fund housing programs and services; imposing |
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a tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle E, Title 3, Insurance Code, is amended |
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by adding Chapter 282 to read as follows: |
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CHAPTER 282. TITLE INSURANCE TAX FOR HOUSING PROGRAMS AND SERVICES |
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Sec. 282.0001. TAX IMPOSED; RATE. (a) A tax is imposed on |
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the issuance of each title insurance policy that is written for |
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delivery in this state by a title insurance company authorized to |
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engage in business in this state and for which the full basic |
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premium is charged. |
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(b) The rate of the tax is $1 on each policy described by |
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Subsection (a). |
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(c) The tax imposed by this section is in addition to other |
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taxes, fees, and assessments imposed on a title insurance company. |
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Sec. 282.0002. COLLECTION OF TAX. The comptroller shall |
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collect the tax. |
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Sec. 282.0003. TAX DUE DATES. (a) A title insurance |
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company shall pay the tax on an annual, semiannual, or more frequent |
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periodic basis, as determined by the comptroller. |
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(b) The comptroller may require semiannual or more frequent |
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periodic payments only from a title insurance company whose tax |
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liability under this chapter for the preceding year was at least |
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$2,000. |
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Sec. 282.0004. DEPOSIT AND USE OF TAX REVENUE. (a) The |
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comptroller shall deposit taxes collected under this chapter as |
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follows: |
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(1) one-fourth to the credit of the foundation school |
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fund; and |
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(2) the remainder to the credit of the general revenue |
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fund. |
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(b) Money deposited under Subsection (a)(2) may be |
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appropriated only for programs and services designed to reduce |
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homelessness and housing insecurity. |
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Sec. 282.0005. RULES. The comptroller may adopt reasonable |
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rules to implement this chapter, including rules providing for the |
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form and manner of remittance of the taxes imposed by this chapter. |
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SECTION 2. Not later than December 1, 2019, the comptroller |
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of public accounts shall adopt rules necessary for the |
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implementation and administration of Chapter 282, Insurance Code, |
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as added by this Act. |
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SECTION 3. Chapter 282, Insurance Code, as added by this |
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Act, applies to a title insurance policy written on or after January |
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1, 2020. A title insurance policy written before January 1, 2020, |
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is governed by the law in effect when the title insurance policy was |
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written, and that law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2019. |